Research Proposal submission

Research Topic

Well, we have chosen our topic as online shopping and the fashion was the product we gonna implement. Online shopping is a quite wider and interesting topic to let us to covering.

I guess everyone should know the terms of online shopping. Online shopping briefly means customers purchase goods or services over Internet. As we can know that in recent years, online shopping has become more popular. But, not most of the people who likes online shopping. Therefore, as an online retailer, they should look for ways to understand customer intentions and look for solutions to clarify customers doubts.

Our topic will be covering at four perspectives:

-Website layout

-Trust issues

-Marketing aspects (pricing and trendy)

-Value proposition and buying factor

After combining these four perspectives, we can find that these are the factors that encourage or discourage customers online shopping. How to attract more customers by using an attractive website layout? How to eliminate the factors that will cause customers reluctant to shop online? How to increase their confidence to shop online?

Reason of choosing the topic

Online shopping has became more and more popular in Malaysia. It has also turn into a habit that people tends to shop online during their leisure time. The web is the "catalog of catalogs". Todays online shopper typically visit multiple sites, loading items into shopping carts as a convenient way to compare total costs, including shipping charges.

Hence, in our report, we are going to have more discussion about online shopping in each domains.

Objectives of the research report

Today we are going to share our research objectives as well as the reasons why we chosen this topic with you. so, have a look!

We have chosen online shopping as our topic because it is our interest at first. We do love shop online, so that we get the experiences and fun on it. Also, we are intended to have a in depth knowledge about it so we will keep on doing research. The objectives for our research are:

• Strategies that need to be implement in order to create a successful web page
• Consideration on the factors towards a successful online business
• Lastly, provide solutions and make improvements from their weakness

Outline of the report

1.0 Introduction

1.1 Definition

1.2 Background

2.0 Strategies that need to be implement in order to create a successful web page

2.1 Website layout
2.2 Trust Issues

3.0 Factors towards a successful online business

3.1 Marketing Aspects
3.1.1 Pricing
3.1.2 Trendy and chic
3.1.3 value propositions

3.1.4 Target Buyers

4.0 Recommendations

5.0 Conclusion

6.0 References

Background/Literature Review

According to Magee (2003), the growth in the number of online shoppers is greater in than the growth in Internet users, indicating that more Internet users are becoming comfortable to shop online. Furthermore, not only does the number of adopters grow, but also the volume of their purchases is proportionally increased (Monsuwe et al, 2004). The two most commonly cited reasons for online shopping have been convenience and price (Chen and Chang, 2003). The use of Internet tools for price searching and comparison provides an additional advantage in consumers’ final decision, as they can purchase their desired products in the lowest available price (Haubl and Trifts, 2000)

There are many factors that encourage and discourage online shopping. During online shopping, online shopper will turn into impulse buying. Impulse buying refers to a distinctive type of an unplanned purchase, and the fact that impulse purchase is unplanned is central to all definitions of impulse buying (Piron 1991, 512).

Factors that encourage impulse buying include anonymity, easy access, greater variety of goods available, marketing promotions and direct marketing, and use of credit cards. In the other hand, there are factors that discourage impulse buying including delayed gratification, easy access, increased consumer control, perceptually poor environment, and price and product comparisons.

Ernst and Young's Annual Global Online Retailing Report (2001) prove that online shopping will represent 10 to 12 percent of all sales and there is a trend to increase to 25 percent by 2005. This is because traditional shopping venues are restrained by time and space and internet has decreased the effort and time consuming

In Quelch and Klein (1996) and Samiee (2001) papers, they defined the internet to be “one of the significant, and perhaps the greatest, marketing tools for the global market place” because internet makes an unlimited range of products and services accessible for consumers all around the world.

Pallab (1996) argued consumers faced certain level of risk and security issues while using their credit cards and disclosing personal information. Consumers also concerned about purchasing a product from faceless sellers without physically examining the products.

Perceived risk is considered an uncertainty regarding the negative consequences of using a products or services. In Bauer (1967), the idea of perceived risk has been captured through the use of various scales by measuring the perception of dangerous events occurring. Dowling and Staelin (1994) defined the concept as “consumer’s perception of the uncertainty and adverse consequences of buying a products or services. In Featherman and Pavlou (2002), it is defined as the potential loss in pursuing a desired outcome while engaged in online shopping.

According to Alba er al (1997), there are four positive factors affect consumer decisions to shop online: vast selection, screening, reliability and product comparison. In addition to these four factors, there is also the convenience factor in that people can shop at any time with no hassle and little interruption. So in Szymanski and Hise (2000), they stated online shopping is a more innovative, convenient way of shopping than traditional shopping channels.

Tan (1999) examined costs and benefits of in store versus online shopping. The result showed that perceived risk is higher when purchasing products through internet.

Bhatnagar et al. (2000) emphasized two types of risk in online shopping: product category risk and financial risk. Product category risk refers to a negative perception about the quality of a product. Financial risk includes both tangible and intangible assets of consumers. That means consumers are quite apprehensive, not only about losing certain amounts of money, but also about losing private information required in the transaction.

Journal references

Nina Koski, Frontiers of e-business Research 2004, Impulse Buying on the Internet: Encouraging and Discouraging Factors, viewed 27 October 2010.

Vaggelis Saprikis, Adamantia Chouliara and Maro Vlachopoulou (2010), Perceptions towards Online Shopping, Vol. 2010, 13 pages, viewed 25^th October 2010.

Yasmin Hassan and Nik Fadrizam Akimin Abdullah (2010), Influencing Factors On Consumer Choice Towards Online Shopping, viewed 26 October 2010.

List of other references

Ahasanul Haque and Ali Khatibi (2006) “The Study of the Behaviour of Malaysian Consumers Towards Online Shopping”, Asian Journal of Information Technology 5 (1) : 12-19.Viewed 26th October 2010.

Alba, Joseph, John Lynch, Barton Weitz, Chris Janiszewski, Richard Lutz, Alan Sawyer, and Stacy Wood (1997), "Interactive Home Shopping: Consumer, Retailer, and Manufacturer Incentives to Participate in Electronic Marketplaces," Journal of Marketing (61), pp. 38-53.Viewed 26th October 2010.

American Statistical Association, Journal of Business, January 1996, Vol 14, No.1. Viewed 13th September 2010.Viewed 13th Septmeber 2010.

Bauer, Raymond A. (1967), "Consumer Behavior as Risk Taking," In Donald F. Cox (eds.), Risk Taking and Information Handling in Consumer Behavior, Boston, MA: Harvard University Press, pp. 23-33.Viewed 26th October 2010.

Bhatnagar, A., Misra, S. M., & Rao, H. R.(2000, November). On Risk, Convenience, and Internet v Shopping Behavior. Communications of the ACM, 43(11), 98-105. Viewed 6th September 2010.

Bhatnagar, Amit, Sanjog Misra, and H. Raghav Rao (2000), "On Risk, Convenience, and Internet Shopping Behavior," Communications of the ACM (43), November, No. 11, pp. 98-105.Viewed 13th Septmeber 2010.

Boudraeu, M.C and Watson R.T (2006) “Internet Advertising Strategy Alignment” Internet Research, 16 (1), 23-37

Comparing online and non-online shoppers. International Journal of Consumer Studies, 27(2), 126-133.

D. Hoffman, T.Nowak and M. Peralta, “Building Consumer Trust in Online Environments, February 1998,Viewed 13th September 2010.

Dowling, Grahame R. and Richard Staelin (1994), "A Model of Perceived Risk and Intended Risk-Handling Activity," Journal of Consumer Research, (21), pp. 119-134.

Ernst and Young (2001), "Consumer Trends in Online Shopping ," Global Online Retailing Report, [URL: http://www.ey.com/global/vault.nsf/US/Consumer_Trends_-_2001_Retail_Study_-_Thought_Center/$file/ConsTrends.pdf]

Featherman, Mauricio S. and Paul A. Pavlou (2002), "Predicting E-Services Adoption: A Perceived Risk Facets Perspective," in Proceedings of the 2002 Americas Conference in Information Systems, Dallas, TX: Association for Information Systems, pp. 1034-1046.

Kim, D.J, Ferrin D.L and Rao H.R (2009) “Trust and Satisfaction, Two Stepping Stones for Successful E-Commerce Relationships: A Longitudinal Exploration” Information System Research 20( 2), 237-257

Li,N. and Zhang P. (2002) “Consumer Online Shopping Attitudes And Behavior: An Assement Of Research”. Eighth Americas Conference on Information Systems.Viewed 26th October 2010.

Limayem, M., Khalifa, M., & Frini, A. (2000, July). What Makes Consumers Buy from Internet? A Longitudinal Study of Online Shopping, 30(4), 421-432. Viewed 13th September 2010.

Lokken, S., Cross, G. W., Halbert, L. K., Lindsey, G., Derby, C., & Stanford, C. (2003 March).

Miyazaki, A., & Fernandez, A. (2001). Consumer Perceptions of Privacy and Security Risks for Online Shopping. Journal of Consumer Affairs, 35( 1), 27-43. Viewed 6th September 2010.

Nik Kamariah Nik Mat and Siti Salwani Meor Ahmad (2005) “Determinants Of Online Shopping” , Proceeding Of International Conference On E-Commerce.Viewed 13th Septmeber 2010.

P. Kollock, “The Production of Trust in Online Markets,” Advances in Group Processess 16 (1999): 99-123. Viewed 13th Septmeber 2010.

P.M Doney and J.P Cannon, “An Examination of the Nature of Trust in Buyer-Seller Relationships,” Journal of Marketing 61 (April 1997): 35-52. Viewed 10th September 2010.

Pallab, Paul (1996), "Marketing on the Internet," Journal of Consumer Marketing, (13) No. 4,

pp. 27-39.Viewed 6th September 2010

Piron, F. 1991. Defining impulse purchasing. Advances in Consumer Research. Vol. 18, 509-514

Quelch, John A. and Lisa R. Klein (1996), "The Internet and International Marketing," Sloan Management Review (37), Spring, No. 3, pp. 60-75.

Samiee, Saeed (2001), "The Internet and International Marketing: Is There a Fit?" In Paul Richardson (eds.), Internet Marketing: Readings and Online Resources, New York, NY: McGraw-Hill/Irwin, pp. 284-301.Viewed 13th Septmeber 2010.

Szymanski, David M. and Richard T. Hise (2000), "e-Satisfaction: An Initial Examination," Journal of Retailing, (76) No. 3, pp. 309-322.Viewed 13th Septmeber 2010.

Tan, Soo J. (1999), "Strategies for Reducing Consumers' Risk Aversion in Internet Shopping," Journal of Consumer Marketing, (16) No. 2, pp. 163-180. Viewed 6th September 2010